BLF/BIT Reform Continues

The latest step in the Business Liscence Fee/Business Income Tax reform came about last week as Council voted to support administering the fee as an "after-the-fact" charge rather than the current "before-the-fact" payment.  The BLF/BIT reform effort seeks to ease the tax burden on small businesses and to improve the economic competitiveness of our city and county.

The Association of Portland's Neighbor Business Associations Executive Director, Jon Turino, outlined how this particular change helps small businesses and our business climate:

"The APNBA supports the proposed change in the city's Business License Fee (BLF) that would (a) administer the fee as a "pay as you earn" charge rather than the current "pay twice to get started" method for businesses being newly organized to operate within the City of Portland, and (b) refund previously paid "final year" taxes over a five year period to the existing businesses that have already paid the up-front double tax.

We think this change will reflect favorably on the City's desire to have its attitude viewed as being more business friendly and that the proposed change represents a fair and reasonable adjustment to the administration of the BLF that will both improve the environment for start-up and small businesses and provide administrative efficiency benefits for the City."

This step follow the 2007 decision by the City of Portland and Multnomah County to reform to city business license fee (BLF) and the county business income tax (BIT). City Council doubled the annual gross receipts exemption from $25,000 to $50,000 and raised the owner's compensation deduction by 30% to $80,000. The changes were the first installment in a plan to raise the owner's compensation deduction to $125,000 over a five-year period.

For more explination of the code changes click here .  Click here for the code change.   

Look for more updates as the reform continues it the months to come!

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